BOOK
IV

MISCELLANEOUS AND FINAL PROVISIONS

TITLE ONE. - PENAL
PROVISIONS

SEC. 511. Posting and Publication
of Ordinances with Penal Sanctions. - (a) ordinances with penal
sanctions
shall be posted at prominent places in the provincial capitol, city,
municipal
or barangay hall, as the case may be, for a minimum period of three (3)
consecutive weeks. Such ordinances shall also be published in a
newspaper
of general circulation, where available, within the territorial
jurisdiction
of the local government unit concerned, except in the case of barangay
ordinances. Unless otherwise provided therein, said ordinances shall
take
effect on the day following its publication, or at the end of the
period
of posting, whichever occurs later.

(b) Any public officer
or employee who violates an ordinance may be meted administrative
disciplinary
action, without prejudice to the filing of the appropriate civil or
criminal
action.cralaw

(c) The secretary to
the sanggunian concerned shall transmit official copies of such
ordinances
to the chief executive officer of the Official Gazette within seven (7)
days following the approval of the said ordinance for publication
purposes.
The Official Gazette may publish ordinances with penal sanctions for
archival
and reference purposes.cralaw

SEC. 512. Withholding
of Benefits Accorded to Barangay Officials. - Willful and malicious
withholding of any of the benefits accorded to barangay officials under
Section 393 hereof shall be punished with suspension or dismissal from
office of the official or employee responsible therefor.cralaw

SEC. 513. Failure to Post
and Publish the Itemized Monthly Collections and Disbursements. -
Failure
by the local treasurer or the local chief accountant to post the
itemized
monthly collections and disbursements of the local government unit
concerned
within ten (10) days following the end of every month and for at least
two (2) consecutive weeks at prominent places in the main office
building
of the local government unit concerned, its plaza and main street, and
to publish said itemization in a newspaper of general circulation,
where
available, in the territorial jurisdiction of such unit, shall be
punished
by a fine not exceeding Five hundred pesos (P=500.00) or by
imprisonment
not exceeding one (1) month, or both such fine and imprisoment, at the
discretion of the court.cralaw

SEC. 514. Engaging in
Prohibited Business Transactions or Possessing Illegal Pecuniary
Interest.
- Any local official and any person or persons dealing with him who
violate
the prohibitions provided in Section 89 of Book I hereof, shall be
punished
with imprisonment for six months and one day to six years, or a fine of
not less than Three thousand pesos (P=3,000.00) nor more than Ten
thousand
pesos (P=10,000.00), or both such imprisonment and fine, at the
discretion
of the court.cralaw

SEC. 515. Refusal or Failure
of Any Party or Witness to Appear before the Lupon or Pangkat. -
Refusal
or willful failure of any party or witness to appear before the lupon
or
pangkat in compliance with a summons issued pursuant to the provisions
on theKatarungang Pambarangay under Chapter 7, Title One of Book III of
this Code may be punished by the city or municipal court as for
indirect
contempt of court upon application filed therewith by the lupon
chairman,
the pangkat chairman, or by any of the contending parties. Such refusal
or willful failure to appear shall be reflected in the records of the
lupon
secretary or in the minutes of the pangkat secretary and shall bar the
complainant who fails to appear, from seeking judicial recourse for the
same cause of action, and the respondent who refuses to appear, from
filing
any counterclaim arising out of, or necessarily connected with the
complaint.
A pangkat member who serves as such shall be entitled to an honorarium,
the amount of which is to be determined by the sanggunian concerned,
subject
to the provisions in this Code cited above.cralaw

SEC. 516. Penalties for
Violation of Tax ordinances. - The sanggunian of a local government
unit is authorized to prescribe fines or other penalties for violation
of tax ordinances but in no case shall such fines be less than One
thousand
pesos (P=1,000.00) nor more than Five thousand pesos (P=5000.00), nor
shall
imprisonment be less than one (1) month nor more than six (6) months.
Such
fine or other penalty, or both, shall be imposed at the discretion of
the
court. The sangguniang barangay may prescribe a fine of not less than
One
hundred pesos (P=100.00) nor more than One thousand pesos (P=1,000.00).cralaw

SEC. 517. Omission of
Property from Assessment or Tax Rolls by Officers and Other Acts. -
Any officer charged with the duty of assessing real property who
willfully
fails to assess, or who intentionally omits from the assessment or tax
roll any real property which he knows to be taxable, or who willfully
or
negligently underassesses any real property, or who intentionally
violates
or fails to perform any duty imposed upon him by law relating to the
assessment
of taxable real property shall, upon conviction, be punished by a fine
of not less than One thousand pesos (P1,000.00) nor more than Five
thousand
pesos (P5000.00), or by imprisonment of not less than one (1) month nor
more than six (6) months, or both such fine and imprisonment, at the
discretion
of the court. The same penalty shall be imposed upon any officer
charged
with the duty of collecting the tax due on real property who willfully
or negligently fails to collect the tax and institute the necessary
proceedings
for the collection of the same. Any other officer required by this Code
to perform acts relating to the administration of the real property tax
or to assist the assessor or treasurer in such administration, who
willfully
fails to discharge such duties shall, upon conviction be punished by a
fine of not less than Five hundred pesos (P500.00) nor more than Five
thousand
pesos (P5000.00) or imprisonment of not less than one (1) month nor
more
than six (6) months, or both such fine and imprisonment, at the
discretion
of the court.cralaw

SEC. 518. Government Agents
Delaying Assessment of Real Property and Assessment Appeals. - Any
government official who intentionally and deliberately delays the
assessment
of real property or the filing of any appeal against its assessment
shall,
upon conviction, be punished by a fine of not less than Five hundred
pesos
(P500.00) nor more than Five thousand pesos (P5000.00), or by
imprisonment
of not less than one (1) month nor more than six (6) months, or both
such
fine and imprisonment, at the discretion of the court.cralaw

SEC. 519. Failure to Dispose
of Delinquent Real Property at Public Auction. - The local
treasurer
concerned who fails to dispose of delinquent real property at public
auction
in compliance with the pertinent provisions of this Code, and any other
local government official whose acts hinder the prompt disposition of
delinquent
real property at public auction shall, upon conviction, be subject to a
fine of not less than One thousand pesos (P1000.00) nor more than Five
thousand pesos (P5000.00), or imprisonment of not less than one (1)
month
nor more than six (6) months, or both such fine and imprisonment, at
the
discretion of the court.cralaw

SEC. 520. Prohibited Acts
Related to the Award of Contracts Under the Provisions on Credit
Financing.
- It shall be unlawful for any public official or employee in the
provincial,
city, or municipal government, or their relatives within the fourth
civil
degree of consanguinity or affinity, to enter into or have any
pecuniary
interest in any contract for the construction, acquisition, operation,
or maintenance of any project awarded pursuant to the provisions of
Title
Four in Book II hereof, or for the procurement of any supplies,
materials,
or equipment of any kind to be used in the said project. Any person
convicted
for violation of the provisions of said Title shall be removed from
office
and shall be punishable by imprisonment of not less than one (1) month,
nor more than two (2) years, at the discretion of the court, without
prejudice
to prosecution under other laws.

TITLE TWO. -
PROVISIONS FOR
IMPLEMENTATION

SEC. 521. Mandatory
Review
Every Five Years. - Congress shall undertake a mandatory review of
this Code at least once every five (5) years and as often as it may
deem
necessary, with the primary objective of providing a more responsive
and
accountable local government structure.

SEC. 522. Insurance Coverage.
- The Government Service Insurance System (GSIS) shall establish and
administer
an appropriate system under which the punong barangay, the members of
the
sangguniang barangay, the barangay secretary, the barangay treasurer,
and
the members of the barangay tanod shall enjoy insurance coverage as
provided
in this Code and other pertinent laws. For this purpose, the GSIS is
hereby
directed to undertake an actuarial study, issue rules and regulations,
determine the premiums payable, and recommend to Congress the amount of
appropriations needed to support the system. The amount needed for the
implementation of the said insurance system shall be included in the
annual
General Appropriations Act.cralaw

SEC. 523. Personnel Retirement
and/or Benefits. - An official or employee of the national
government
or local government unit separated from the service as a result of
reorganization
effected under this Code shall, if entitled under the laws then in
force,
receive the retirement and other benefits accruing thereunder:
Provided,
however, That such benefits shall be given funding priority by the
Department
of Budget and Management in the case of national officials and
employees,
and the local government unit concerned in the case of local officials
and employees.cralaw

Where the employee concerned
is not eligible for retirement, he shall be entitled to a gratuity from
the national government or the local government unit concerned, as the
case may be, equivalent to an amount not lower than one (1) month
salary
for every year of service over and above the monetary value of the
leave
credits said employee is entitled to receive pursuant to existing laws.cralaw

SEC. 524. Inventory of
Infrastructure and Other Community Facilities. - (a) Each local
government
unit shall conduct a periodic inventory of infrastructure and other
community
facilities and undertake the maintenance, repair, improvement, or
reconstruction
of these facilities through a closer cooperation among the various
agencies
of the national government operating within the province, city, or
municipality
concerned.cralaw

(b) No infrastructure
or community project within the territorial jurisdiction of any local
government
unit shall be undertaken without informing the local chief executive
and
the sanggunian concerned.cralaw

SEC. 525. Records and
Properties. - All records, equipment, buildings, facilities, and
other
properties of any office or body of a local government unit abolished
or
reorganized under this Code shall be transferred to the office or body
to which its powers, functions, and responsibilities are substantially
devolved.

TITLE THREE. -
TRANSITORY PROVISIONS

SEC. 526. Application
of
this Code to Local Government Units in the Autonomous Regions. -
This
Code shall apply to all provinces, cities, municipalities and barangays
in the autonomous regions until such time as the regional government
concerned
shall have enacted its own local government code.

SEC. 527. Prior Approval
or Clearance on Regular and Recurring Transactions. - Six (6)
months
after effectivity of this Code, prior approval of or clearance from
national
agencies or offices shall no longer be required for regular and
recurring
transactions and activities of local government units.cralaw

SEC. 528. Deconcentration
of Requisite Authority and Power. - The national government shall,
six (6) months after the effectivity of this Code, effect the
deconcentration
of requisite authority and power to the appropriate regional offices or
field offices of national agencies or offices whose major functions are
not devolved to local government units.cralaw

SEC. 529. Tax Ordinances
or Revenue Measures. - All existing tax ordinances or revenue
measures
of local government units shall continue to be in force and effect
after
the effectivity of this Code unless amended by the sanggunian
concerned,
or inconsistent with, or in violation of, the provisions of this Code.cralaw

SEC. 530. Local Water
Districts. - All powers, functions, and attributes granted by
Presidential
Decree Numbered One hundred ninety-eight (P.D. No. 198), otherwise
known
as "The Provincial Water Utility Act of 1973," to the Local Water
Utilities
Administration (LWUA) may be devolved in toto to the existing local
water
districts should they opt or choose to exercise, in writing, such
powers,
functions and attributes: Provided, That all obligations of the local
government
unit concerned to the LWUA shall first be settled prior to said
devolution.cralaw

SEC. 531. Debt Relief
for Local Government Units. - (a) Unremitted national collections
and
statutory contributions. - All debts owed by local government units to
the national government in unremitted contributions to the Integrated
National
Police Fund, the Special Education Fund, and other statutory
contributions
as well as in unremitted national government shares of taxes, charges,
and fees collected by the local government units, are hereby written
off
in full.cralaw

(b) Program loans.
- (1) Program loans secured by local government units which were relent
to private persons, natural or juridical, shall likewise be written off
from the books of the local government units concerned: Provided,
however,
That the national government agency tasked with the implementation of
these
programs shall continue to collect from the debtors belonging to the
private
sector concerned.cralaw

(2) Program loans granted
to local government units by national government agencies and which
were
utilized by the local units for community development, livelihood, and
other small-scale projects are hereby written off in full.cralaw

(c) Settlement of debts
due to government financing institutions (GFIs), government-owned and
controlled
corporations (GOCCs), and private utilities. The national government
shall
assume all debts incurred or contracted by local government units from
GFIs, GOCCs, and private utilities that are outstanding as of December
31, 1988, in accordance with the following schemes:chanrobles virtual law library

(1) Debts due GFIs.
- The national government may buy outstanding obligations incurred by
local
government units from government financing institutions at a discounted
rate.cralaw

(2) Debts due GOCCs.
- The national government may settle such obligations at discounted
rate
through offsetting, only to the extent of the obligations of local
governments
against the outstanding advances made by the National Treasury in
behalf
of the government-owned and controlled corporations concerned.cralaw

(3) Debts Due Private
Utilities. - The national government may settle these obligations at a
discounted rate by offsetting against the outstanding obligations of
such
private utilities to government-owned corporations. GOCCs may in turn
offset
these obligations against the outstanding advances made by the National
Treasury in their behalf. In the case of obligations owed by local
government
units to private utilities which are not indebted to any GOCC or
national
government agency, the national government may instead buy the
obligations
of the local government units from the private utilities at a
discounted
rate, upon concurrence by the private utilities concerned.cralaw

(d) Limitations. -
Obligations to the Home Development and Mutual Fund (Pag-ibig),
Medicare,
and those pertaining to premium contributions and amortization payments
of salary and policyloans to the Government Service Insurance System
are
excluded from the coverage of this Section.cralaw

(e) Recovery schemes
for the national government- Local government units shall pay back
the
national government whatever amounts were advanced or offset by the
national
government to settle their obligations to GFIs, GOCCs, and private
utilities.
The national government shall not charge interest or penalties on the
outstanding
balance owed by the local government units. These outstanding
obligations
shall be restructured and an amortization schedule prepared, based on
the
capability of the local government unit to pay, taking into
consideration
the amount owed to the national governmentThe national government is
hereby authorized to deduct from the quarterly share of each local
government
unit in the internal revenue collections an amount to be determined on
the basis of the amortization schedule of the local unit concerned:
Provided,
That such amount shall not exceed five percent (5%) of the monthly
internal
revenue allotment of the local government unit concerned. As incentive
to debtor-local government units to increase the efficiency of their
fiscal
administration, the national government shall write off the debt of the
local government unit concerned at the rate of five percent (5%) for
every
one percent (1%) increase in revenues generated by such local
government
unit over that of the preceding year. For this purpose, the annual
increase
in local revenue collection shall be computed starting from the year
1988.cralaw

(f) Appropriations.
- Such amount as may be necessary to implement the provisions of this
Section
shall be included in the annual General Appropriations Act.cralaw

SEC. 532. Elections for
the Sangguniang Kabataan. - (a) The first elections for the
sangguniang
kabataan to be conducted under this Code shall be held thirty (30) days
after the next local elections: Provided, That, the regular elections
for
the sangguniang kabataan shall be held one hundred twenty (120) days
after
the barangay elections thereafter.cralaw

(b) The amount pertaining
to the ten percent (10%) allocation for the kabataang barangay as
provided
for in Section 103 of Batas Pambansa Blg. 337 is hereby reappropriated
for the purpose of funding the first elections mentioned above. The
balance
of said funds, if there be any after the said elections, shall be
administered
by the Presidential Council for Youth Affairs for the purpose of
training
the newly elected sangguniang kabataan officials in the discharge of
their
functions.cralaw

(c) For the regular
elections of the sangguniang kabataan, funds shall be taken from the
ten
percent (10%) of the barangay funds reserved for the sangguniang
kabataan,
as provided for in Section 328 of this Code.cralaw

(d) All seats reserved
for the pederasyon ng mga sangguniang kabataan in the different
sanggunians
shall be deemed vacant until such time that the sangguniang kabataan
chairmen
shall have been elected and the respective pederasyon presidents have
been
selected: Provided, That, elections for the kabataang barangay
conducted
under Batas Pambansa Blg. 337 at any time between January 1, 1988 and
January
1, 1992 shall be considered as the first elections provided for in this
Code. The term of office of the kabataang barangay officials elected
within
the said period shall be extended correspondingly to coincide with the
term of office of those elected under this Code.cralaw

SEC. 533. Formulation
of Implementing Rules and Regulations. - (a) Within one (1) month
after
the approval of this Code, the President shall convene the Oversight
Committee
as herein provided for. The said Committee shall formulate and issue
the
appropriate rules and regulations necessary for the efficient and
effective
implementation of any and all provisions of this Code, thereby ensuring
compliance with the principles of local autonomy as defined under the
Constitution.cralaw

(b) The Committee shall
be composed of the following:chanrobles virtual law library

(1) The Executive Secretary,
who shall be the Chairman;

(2) Three (3) members
of the Senate to be appointed by the President of the Senate, to
include
the Chairman of the Committee on Local Government; (3)Three (3) members
of the House of Representatives to be appointed by the Speaker, to
include
the Chairman of the Committee on Local Government;

(4) The Cabinet, represented
by the following:chanroblesvirtuallawlibrary(i) Secretary of the
Interior
and Local Government;(ii) Secretary of Finance;(iii)Secretary of Budget
and Management; and(5) One (1) representative
from each of the following:chanroblesvirtuallawlibrary(i) The League of
Provinces;(ii) The League of Cities;(iii)The League of
Municipalities;
and(iv) The Liga ng mga
Barangay.cralaw

(c) The Committee shall
submit its report and recommendation to the President within two (2)
months
after its organization. If the President fails to act within thirty
(30)
days from receipt thereof, the recommendation of the Oversight
Committee
shall be deemed approved. Thereafter, the Committee shall supervise the
transfer of such powers and functions mandated under this Code to the
local
government units, together with the corresponding personnel ,
properties,
assets and liabilities of the offices or agencies concerned, with the
least
possible disruptions to existing programs and projects. The Committee
shall
likewise recommend the corresponding appropriations necessary to effect
the said transfer. For this purpose, the services of a technical staff
shall be enlisted from among the qualified employees of Congress, the
government
offices, and the leagues constituting the Committee.cralaw

(d) The funding requirements
and the secretariat of the Committee shall be provided by the Office of
the Executive Secretary.cralaw

(e) The sum of Five
million pesos (P5,000,000), which shall be charged against the
Contingent
Fund, is hereby allotted to the Committee to fund the undertaking of an
information campaign on this Code. The Committee shall formulate the
guidelines
governing the conduct of said campaign, and shall determine the
national
agencies or offices to be involved for this purpose.

(e) The following provisions
are hereby repealed or amended insofar as they are inconsistent with
the
provisions of this Code: Sections 2, 16, and 29 of Presidential Decree
No. 704; Section 12 of Presidential Decree No. 87, as amended; Sections
52, 53, 66, 67, 68, 69, 70, 71, 72, 73, and 74 of Presidential Decree
No.
463, as amended; and Section 16 of Presidential Decree No. 972, as
amended,
and

(f) All general and
special laws, acts, city charters, decrees, executive orders,
proclamations
and administrative regulations, or part or parts thereof which are
inconsistent
with any of the provisions of this Code are hereby repealed or modified
accordingly.cralaw

SEC. 535. Separability
Clause. - If, for any reason or reasons, any part or provision of
this
Code shall be held to be unconstitutional or invalid, other parts or
provisions
hereof which are not affected thereby shall continue to be in full
force
and effect.

SEC. 536. Effectivity
Clause. - This Code shall take effect on January first, nineteen
hundred
ninety-two, unless otherwise provided herein, after its complete
publication
in at least one (1) newspaper of general circulation.